Beverly Hills Businessman Arrested for Running Luxury Watch Ponzi Scheme
A prominent businessman in Beverly Hills has been arrested for allegedly scamming customers out of $3 million through a luxury watch Ponzi scheme. Anthony Farrer, the owner of The Timepiece Gentleman, a watch consignment business located on Rodeo Drive, was apprehended by FBI agents following an investigation into his fraudulent activities.
Farrer’s lavish lifestyle, complete with a red Lamborghini and Ducati motorcycles, along with his collection of expensive watches, had garnered him a considerable following on social media platforms like Instagram and YouTube. His clients trusted him to sell their luxury timepieces and receive a 5% commission on each sale. However, it became evident that Farrer was deceiving his customers and pocketing the proceeds instead.
Multiple victims came forward, reporting that they had either wired funds to Farrer for watch purchases or sent him their valuable timepieces for consignment, only to never receive payment or have their watches returned. Law enforcement estimates that the losses suffered by victims currently stand at approximately $3 million.
According to court documents, Farrer’s fraudulent activities began in late 2022 when he moved to California and opened a new branch of his watch business. He would collect watches from individuals, have them sign consignment agreements, and promise to sell the timepieces for them. However, instead of paying his clients, he would keep the money for himself.
As accusations of his fraudulent behavior began to surface, Farrer continued to maintain the appearance of a successful luxury watch dealer on social media, often traveling to different locations. However, law enforcement discovered that his Beverly Hills store had closed down, and Farrer was found to be enjoying a lifestyle financed by his customers’ money.
More than 20 clients have reported losses due to Farrer’s deception, with one victim claiming to have consigned watches worth approximately $3.2 million. Farrer only paid this particular client a fraction of the amount owed and used some of the watches as collateral for a loan.
During his rise to social media prominence, Farrer frequently shared glimpses of his affluent lifestyle and spoke candidly about his past, which included stints in prison for DWI and evading arrest. When confronted with allegations, he confessed to his business failings and the mounting debt he owed to customers, blaming a gambling problem and poor decision-making.
Farrer is currently being held without bail at a federal jail in Los Angeles and will be arraigned in December. If found guilty of wire fraud, he could face a maximum sentence of 20 years in federal prison. Investigators are continuing to interview additional clients to determine the full extent of Farrer’s luxury watch Ponzi scheme.
This arrest serves as a reminder to consumers to be cautious of individuals who promise high returns on investments or engage in schemes that seem too good to be true. It is essential to thoroughly research and verify the legitimacy of businesses and individuals before entering into any financial transactions, especially when dealing with luxury goods like watches.
